Cambodia

2186 Words5 Pages

Cambodia

Cambodia finally experienced its first year of peace in over 30 years. This may look attractive to many investors. In this profile report, Cambodia’s demographics, economy, political environment, investment laws, socio-cultural risk, and technological environments will be discussed.

Demographics

· Poor and young population

The EUI estimates the population was around 11.3 million in 1998 based on a UN Population Fund/ Cambodian government survey in December 1996. Estimates for this country take into account the effects of excess mortality due to AIDS; this can result in lower life expectancy, higher infant mortality and death rates, lower population and growth rates, and changes in the distribution of population by age and sex than would otherwise be expected (CIA Factbook 2000). The annual per head income in 1997 is estimated at $243 (EIU Country Profile). According to the Central Intelligence Agency in 2000, it is estimated that 42% of the population are under15 years of age. This suggests that the future population growth rate will be high.

Source: CIA World Factbook 2000

· Other Ethnic Groups

Most of the population, about 90%, is of Khmer ethnic origin (EIU Country Profile). In the highlands there are several other groups. The three largest are the Vietnamese (around 500,000), the Chinese (around 300,000), and the Cham & Malay Muslims (around 130,000). Racism against the Vietnamese is common (EIU Country Profile). The ethnic Chinese have re-established themselves during the 1990s as a major economic force, after having suffered persecution at the hands of the Khmer Rough (EIU Country Profile).

· Poor education

Cambodia’s education is one of the lowest in the world. At the end of the Pol Pot era formal education had ceased, and many educated Cambodians had left the country or had been killed (EIU Country Profile). 65% of people over the age of 15 cannot read or write (CIA World Factbook 2000).

Higher educational level opportunities are inadequate, resulting in shortages of skilled labor. The lack of skilled workers is a problem both for investors and for government efforts to improve public administration. Budgetary constraints limit the scope for developing education.

(EIU Country Profile)

Economic Environment

· Economic Growth

In 2000 the EIU is forecasting GDP growth of 5.5%, rising to ...

... middle of paper ...

...e most promising because of the already present skilled workforce.

But the most importing factor in investing in this country is political stability. Cambodia has just only recently attained political stability. There is still tension between the political parties. My recommendation would be to wait a year or two.

Bibliography:

American Embassy, Phnom Penh. Labor Trends Report August 2000. US Embassy. Found 9/7/2000. http://www.usembassy.state.gov/posts/cb1/wwwh0020.html

Asian Development Bank, Asian Development Outlook, 1997 and 1998

Cambodia, Laos 1999-2000: Country Profile. London: The Economist Intelligence Unit, 1999.

Cambodia, Laos 1999-2000: Country Report, 1st quarter 2000. London: The Economist Intelligence Unit, 1999.

Cambodia. January 2000. The World Factbook 2000. CIA. Found 9/7/2000.

http://www.odce.gov/cia/publications/factbook/geos/cb.html

Lynch, Russ. “HEI subsidiary in deal to build power plant in Cambodia.” Honolulu Star Bulletin 20 March 1996, business.

McLellan, Janet. “An Evaluation of Resettlement and Adaptation. March 20, 2000.” Center for Refugee Studies. Found 9/7/2000. http://www.rcmp-learning.org/docs/ecdd1281.htm

More about Cambodia

Open Document